New Delhi: Prime Minister Narendra Modi’s ambitious plan to provide health insurance to 10 crore poor families would require Rs 11,000 crore ($1.71 billion) in federal and state funding each year, a government official told Reuters.

A file image of PM Narendra Modi.

The National Health Protection Scheme, dubbed “Modicare” and announced in Thursday’s budget, would provide 10 crore families, or about 50 crore poor people, with a health cover of Rs 5 lakh ($7,850) for free treatment of serious ailments.

The government has estimated the premium for insuring each family would be about Rs 1,100 ($17.15), said the government official with direct knowledge of the matter.